Liquid Asset
Definition of 'Liquid Asset'An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally regarded in the same light as cash because their prices are relatively stable when they are sold on the open market. |
|
Investopedia explains 'Liquid Asset'For an asset to be liquid it needs an established market with enough participants to absorb the selling without materially impacting the price of the asset. There also needs to be a relative ease in the transfer of ownership and the movement of the asset. Liquid assets include most stocks, money market instruments and government bonds. The foreign exchange market is deemed to be the most liquid market in the world because trillions of dollars exchange hands each day, making it impossible for any one individual to influence the exchange rate. |
Related Definitions
Articles Of Interest
-
Understanding Financial Liquidity
Understanding how this measure works in the market can help keep your finances afloat. -
ETF Liquidity: Why It Matters
Lower levels of liquidity in exchange-traded funds make it harder to trade them profitably. -
Designating A Minor As An IRA Beneficiary
Leaving liquid assets like cash or securities to minors can be a complicated procedure. Make sure you understand how your gift will be distributed, managed and taxed. -
How do I measure option liquidity?
An option is a financial instrument that gives the holder the right to purchase shares in a company at a certain set price (strike price) before a set date known as the expiration date. Options, ... -
What is a liquidity squeeze?
A liquidity squeeze occurs when a financial event sparks concerns among financial institutions (such as banks) regarding the short-term availability of money. These concerns may cause banks to ... -
EUR/USD around 1.3350, ZEW eyed
FXstreet.com (Edinburgh) - The bearish tone in the shared currency continues to drive the EUR/USD lower on Tuesday, prolonging its decline from Monday’s highs around 1.3380.EUR/USD cautious ahead ... -
US Dollar Selloff Pauses After Prices Clear Critical Support
THE TAKEAWAY: The US Dollar has stalled to digest recent losses after breaking its 2013 rising trend as traders await the outcome of the FOMC monetary policy meeting.Capitalize on Shifts in Market ... -
GBP/USD capped at 1.57 ahead of UK CPI
FXstreet.com (Barcelona) - Cable is last at fresh session lows 1.5699 retracing from session highs at 1.5739, on the back of broad USD strength. The pair is about flat for the week so far, capped ... -
EUR/USD braces for volatile week
FXstreet.com (Barcelona) - In what promises to be an extremely busy and volatile week for EUR/USD the pair has started out on a strong note climbing 21 pips to close at 1.3365. Analysts are ... -
Session Recap: Aussie eases on RBA; USD broadly stronger
FXstreet.com (Barcelona) - USD has advanced across the board today in the Asia-Pacific specially against Aussie, but also against Yen, Euro, Pound, or Kiwi, back to 80.71 for the USD index spot ...
Free Annual Reports